Indicators/Oscillators

mobil22

What combination of indicators/oscillators will give the best view of an individual stock?

markd

Every trader/investor will have their own favorites and their own methods for interpreting them. There is no right answer. An indicator doesn't become popular unless it has some merit. Then again, none of them work all the time in every market. It's really about which ones make sense to your way of thinking.

But you could start with John Murphy's recommendations:

https://stockcharts.com/school/doku.php?id=chart_school:trading_strategies:john_murphy_s_ten_laws_of_technical_trading

Kevo

My preference is two Trend, two Momentum, and two OB/OS indicators on my default ChartStyle and saved Charts.

There are several metrics within Technical Analysis. Here is most, but not all: Trend, Momentum, OverBought/OverSold, Volume, Price Relative, Relative Strength, CandleStick Patterns, Divergence, Volatility, and Cycle. There is a topic named Multicollinearity, which suggests not to look at too many of the same type. To make better decisions, Multicollinearity suggests using indicators of different types.

Here is the ChartSchool link to Multicollinearity: Multicollinearity

Here is markd's link again: John Murphy's Ten Laws of Technical Trading

Kevo

Hi SCAlchemist,

The chart below is a style of chart that I use for saved charts. It is a Daily period:



This style of chart is one of my favorites. I don't use it as a ChartStyle. It has two OB/OS indicators and 2 Momentum indicators. Of the 2 momentum indicators, 1 is slower than the other. The 2 momentum indicators can also serve as 2 trend indicators i.e. are the lines above/below the centerline. The third way to check trend is Price > 20 EMA > 50 SMA > 200 SMA.

My Default ChartStyle, I use a 60 minute chart of this same style above, but with a different chart color since it is a different period.

I have learned that setting up good charts, organizing, and learning to properly read charts is one tiny part of learning to be a good investor/trader. It is still a process I am going through.

mobil22

John Murphy's "Ten Laws of Technical Trading" was a great help. Thanks for the Multicollinearity link.

SCAlchemist

Kevo, would you be able to give an example on a live chart, of your default ChartStyle with two Trend two Momentum and two OB/OS indicactator?. It would be hugely appreciated.

SCAlchemist

Fantastic, Kevo! Your chart is an awesome contribution! Thank You!